Net Element Releases Open Letter to Shareholders

Net Element Releases Open Letter to Shareholders

The First Anniversary of Being Publicly Traded on NASDAQ

MIAMI, Oct. 18, 2013 (GLOBE NEWSWIRE) -- Net Element International
(Nasdaq:NETE), a technology-driven group specializing in mobile payments and
value-added transactional services, releases the following letter to
Shareholders from the Company's CEO, Oleg Firer:

October marks the first anniversary of Net Element as a publicly traded
company with a NASDAQ listing. This is an important milestone. We would like
to take this opportunity to share several noteworthy achievements and
reorganizational changes that have been made toward longevity and
profitability of Net Element and to share our progress in building and
strengthening key strategic partnerships that make us a more relevant and
engaged enterprise.

Just last month, we undertook one of the most important decisions in the
company's history by divesting our non-core business assets. While this
represents a cultural shift, it allows us to focus on the segment of our
business that generates the most revenues and that we believe has the greatest
growth potential and facilitates the promotion of our intellectual assets and
business relationships that are substantial competitive differentiators.

Throughout this past year, the entire management team has worked tirelessly to
further develop the Company's technologies, establish new relationships, and
identify new industry opportunities.As CEO, my primary responsibility is to
deliver shareholder value and to ensure the ongoing success of our
company.Our team is committed to keeping shareholders informed and involved
so that you understand the dynamics of our industry and our company.Although
we still have a lot of hard work ahead, we are excited about the numerous
opportunities at hand that we plan on pursuing this year and over the long
term.When I reflect on how far we've come over the past 12 months I couldn't
be more motivated and optimistic about what we will achieve in the next
year.Here are a few highlights from this year:

Business Focus

Unified Payments, a provider of transaction processing services and
payment-enabling technologies that was recognized by Inc. Magazine as the
fastest-growing private company in the U.S. in 2012, was acquired by the
Company in April of this year.The acquisition diversified Net Element
International's mobile payments business and created a new platform division
"TOT Group, Inc.", with a focus on global mobile payments and transaction
processing.Soon after completing the acquisition, Net Element initiated the
integration and localization of products and services offered by Unified
Payments in Russia and other emerging markets.According to a report by
Capgemini, the global volume of non-cash payments continues to show steady
growth, with the largest gain in volumes occurring in developing markets.The
market for mobile payments is estimated to grow to $1.3 trillion annually by
2017 (Juniper Research).The completion of the Unified Payments acquisition
positions Net Element International's TOT Group to capitalize on a significant
growth market opportunity.

Last month's divestiture of non-core assets will have several benefits for Net
Element, including the reduction of expenses and focusing operations in a
unified business sector.Net revenues from the operations divested totaled
$14,484 for the six months ended June 30, 2013, representing an insignificant
percentage of the Company's revenues.The Company is well positioned for
continued growth and innovation in the mobile payments and value-added
transactional business arena and we are committed to focus our energy and
resources on the central, strategic components of our business in order to
drive further innovation.

Internet commerce changed the way the world does business, and now the rapid
expansion of mobile is morphing the retail environment again.Net Element
drives growth for its clients and partners by enabling commerce around the
world with the focus on delivering innovative, comprehensive, secure and
scalable solutions, which allow merchants to streamline their commerce
resources.

Financial Performance

Net Element International reported 2013 second-quarter net revenues of
$5,615,719, which represents a significant increase over net revenues of
$37,818 from the same period in the prior year as a result of completion of
the Unified Payments acquisition in the second-quarter of 2013.General &
Administrative expenses for second-quarter 2013 were $3,807,913 as compared to
General & Administrative expenses of $2,443,387 (as restated) one year
previously, representing a 56 percent increase.Net loss for the quarter was
$20,231,697, or $(0.72) per share, as compared to a net loss of $2,573,263 (as
restated), or $(0.13) per share.The increased loss was driven primarily by
non-cash impairments, which were necessary to clean up the company's
financials and set a strong foundation for growth.Goodwill impairment
(non-cash) for the 2013 second-quarter was $11.2 million; in addition, the
company recorded a $5,792,487 provision for loan losses.Additional
information regarding Net Element International's results of operations for
its second-quarter ended June 30, 2013 may be found in Net Element
International's quarterly report on Form 10-Q, which was filed with the
Securities and Exchange Commission (SEC) on August 19, 2013 and may be
obtained from the SEC's Internet website at http://www.sec.gov.

Product Portfolio Growth

Net Element's acquisition of Aptito in the 2013 second quarter provided the
Company with a consumer-centric payments solution that filled a vacuum in the
portfolio.Aptito is a next-generation, cloud-based payments platform, which
creates an online consumer experience into offline commerce environments via
tablet, mobile and all other cloud-connected devices.Aptito's Restaurant mPOS
solution provides restaurants with tools to increase sales, productivity, and
customer loyalty.The solution is a tablet-based POS that combines traditional
POS functionality with mobile ordering, payments, social media, intelligent
offers, mobile applications, loyalty, and transactional data all in one
solution with Aptito's cloud-based payments platform at the center of it
all.Restaurant staff can place orders directly from their mobile phones,
which print instantaneously in the kitchen. Shortly after the acquisition of
Aptito, the Company announced key integrations of Aptito's payments platform
with TSYS, one of the world's largest processors of merchant acquirers and
bank credit card issuers, and USAePay, a payment gateway that is integrated
with major payments platforms.These integrations provide Aptito with an
extensive footprint to rollout its solutions.

In addition to planned acquisitions and strategic partnerships undertaken in
the past year, Net Element's long-term vision is to continue to lead in new
technological developments.To that end, in the second quarter of 2013, Net
Element entered into an investor accreditation agreement to develop new
technology with The Skolkovo Foundation, a government funded research and
development center in Moscow.This multi-year and multimillion dollar
investment allocation by Net Element provides exclusive access to early stage
mobile payments and transactional services technology.Pursuant to the
agreement, Net Element will set aside up to $12 million (370 mln Rub) over the
next three years with Skolkovo for investment in companies and technologies
that meet NETE's investment criteria and strategic initiatives.The role of
Net Element's interests is specifically focused on mobile payments and
transactional services technology projects.

Earlier this month, Net Element announced the launch of "TOT Platform" - a
value-added transactional services platform.Launched in partnership with
PAY.ON, the world's leading operator of multi-channel payment infrastructure
systems, TOT Platform will be the first offering of its kind in the region and
will allow Net Element's subsidiary TOT Group to offer its client-base
innovative solutions in mobile payments and transactional services.TOT
Platform is a high-performance transaction processing platform that complies
with security standards and requirements applicable to the international
payments market.The launch of TOT Platform will enhance TOT Group's suite of
value-added, innovative technologies and services in emerging markets.The
announcement of TOT Platform further demonstrates Net Element's commitment to
creating innovative and practical solutions for emerging markets that function
as fully integrated operations and marketing tools for TOT Group's clients and
partners.

Looking Ahead

Given our accomplishments to date, our clear growth strategy in an appealing
market sector and our ongoing efforts, we are optimistic about Net Element's
continued success throughout 2013 and well into the future.

The overall payments market in Russia and Commonwealth of Independent States
has grown significantly in recent years, with increasing demand for improved
infrastructure and value-added technologies.We believe our recently announced
launch of TOT Platform coupled with our suite of value-added technologies will
create more opportunities to grow our presence and introduce innovation to the
market.

Additionally we believe that the Company's acquisition of Unified Payments
earlier this year, will diversify our market presence to the American market
and allow us to further develop value-added technologies and solutions that
will make Unified Payments competitive in that marketplace.

We expect these initiatives, coupled with the successful execution of our
growth strategy, will drive continued financial and operational growth, and
enhance value for shareholders.On behalf of the entire Net Element family,
thank you for sharing in our success to date and being a partner in our
future.

Warm Regards,

Oleg Firer - Chief Executive Officer
Net Element International
ofirer@netelement.com

About Net Element International (Nasdaq:NETE)

Net Element International (Nasdaq:NETE) is a global technology-driven group
specializing in mobile payments and value-added transactional services.The
company owns and operates a global mobile payments and transaction processing
provider, TOT Group.TOT Group companies include Unified Payments, recognized
by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012,
Aptito, a next generation cloud-based point of sale payments platform, and TOT
Money, which has a leading position in Russia and has been ranked as the #1
SMS content provider by Beeline, Russia's second largest telecommunications
operator.Together with its subsidiaries, Net Element International enables
ecommerce and adds value to mobile commerce environments.Its global
development centers and high-level business relationships in the United
States, Russia and Commonwealth of Independent States strategically position
the company for continued growth.The company has U.S. headquarters in Miami
and international headquarters in Moscow.More information is available at
www.netelement.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.Any statements contained in this
press release that are not statements of historical fact may be deemed
forward-looking statements.Words such as "continue," "will," "may," "could,"
"should," "expect," "expected," "plan," "intend," "anticipate," "believe,"
"estimate," "predict," "potential," and similar expressions are intended to
identify such forward-looking statements.These forward-looking statements
include, without limitation, the extent that Net Element International is able
to build the leading mobile payments, transaction processing and/or electronic
content monetization company; the extent that Net Element International's
payment processing business recognizes and/or realizes upon growth
opportunities in the U.S., Russia and/or emerging countries; the extent that
Net Element International's content monetization business further develops
and/or grows; whether Net Element International delivers positive results,
strategic relationships and/or further commercialization in 2013; whether Net
Element International's operations become profitable; and whether Net Element
International or its business continues to grow.All forward-looking
statements involve significant risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements, many of which are generally outside the control of
Net Element International and are difficult to predict.Examples of such risks
and uncertainties include, but are not limited to: (i) Net Element
International's ability (or inability) to obtain additional financing in
sufficient amounts or on acceptable terms when needed; (ii) Net Element
International's ability to maintain existing, and secure additional, contracts
with users of its payment processing services; (iii) Net Element
International's ability to successfully expand in existing markets and enter
new markets; (iv) Net Element International's ability to successfully manage
and integrate any acquisitions of businesses, solutions or technologies; (v)
unanticipated operating costs, transaction costs and actual or contingent
liabilities; (vi) the ability to attract and retain qualified employees and
key personnel; (vii) adverse effects of increased competition on Net Element
International's business; (viii) changes in government licensing and
regulation that may adversely affect Net Element International's business;
(ix) the risk that changes in consumer behavior could adversely affect Net
Element International's business; (x) Net Element International's ability to
protect its intellectual property; and (xi) local, industry and general
business and economic conditions.Additional factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual report on
Form 10-K and the subsequently filed quarterly reports on Form 10-Q and
current reports on Form 8-K filed by Net Element International with the
Securities and Exchange Commission.Net Element International anticipates that
subsequent events and developments may cause its plans, intentions and
expectations to change.Net Element International assumes no obligation, and
it specifically disclaims any intention or obligation, to update any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by law.

CONTACT: MEDIA CONTACT:
         Dan Bruck
         dbruck@netelement.com
         (305) 507-8808
         www.netelement.com